The Cournot theory of oligopoly assumes rivals will:
A. keep their output constant.
B. follow the learning curve.
C. decrease output whenever a firm increases its output.
D. increase their output whenever a firm increases its output.
Answer: A
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If a central bank is said to be leaning against the wind, they have signaled that they will
A) intervene to reverse the current trend of their currency. B) intervene to accelerate the current trend of their currency. C) not intervene in the currency markets at all. D) work together with their opposition even if it is politically difficult.
Suppose that in a certain society $10,000 is the official cut-off of income for the poor. This means that any person making less than $10,000 is considered poor. Suppose further that there are three people in this society: Randy, Marlon, and Tito, with incomes of $9,900, $9,900, and $5,000, respectively.
A) How many people are in poverty? B) How much income would it take, on average, to lift every poor person out of poverty? C) What if some policy caused $200 to be taken from Tito and given to Randy. How many people are in poverty now? How much income would it take, on average, to lift every poor person out of poverty?
In a price-taker market, profits are
a. the result of consumers being charged arbitrarily high prices. b. a reward for creating value. c. the result of barriers to entry into the market. d. a signal that fewer resources are needed in a market.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index rises, and nominal value of the domestic currency remains the same. d. The GDP Price Index falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.